FINA 3320.501 Principles of Finance Spring 2019 05, Narrow Falls Lumber 2015 Income Statement Net sales $848,600 542,800 147400 $158,400 12,600 $145,800 51,800 4,000 Cost of goods sold EBIT Interest Taxable income Taxes Net income Dividends $28,200 Narrow Falls Lumber Balance Sheets as of December 31, 2014 and 2015 2015 2014 2015 2014 32,300 26,900Accounts payable 78,900 79,200 50,000 40,000 Cash Accounts recelvable74,700 72,300Notes payable 99,600 97,800 Long-term debt 295,600 354,500 Common stock and paid-in surplus 175,000 253.300 170,000 ($1 par value) Retained eamings 319100 Total iabilities & Nettoe d assets 707,100 705,000 $913,600 $902,000 Total assets $913 600 $902000ners' equity$ Assume that all costs, assets, and accounts payable change spontaneously with sales. For simplicity's sake, assume interest expense also changes spontaneously with sales Page 2 of 5 FIRST EXAMINATION Extra Opportunity In-Class Work FINA 3320.501 Principles of Finance Spring 2019 (even though you know if may not). The tax rate and dividend payout ratios remain constant. If the firm's managers project a firm growth rate of 15 percent for next year what will be the amount of external financing needed to support this level of growth? 110 Points EFN-S